Supply Chain Task 3

The investors of Best Tool Company (BTC), a company established to manufacture and sell electric drills, saws, and sanders, have requested a supply chain strategy which is outlined below.
A.) In considering options for supply chain strategy, the pros and cons of various methods should be considered. In this section, the Keiretsu networks, Virtual Company, and Vertical Integration methods will be discussed.
Keiretsu networks are business networks composed manufacturers, distributors, and financiers. In this model, the manufacturers may choose to be partial owners of the suppliers and the suppliers become part of the company coalition (Heizer & Render, 2011). The benefit of a Keiretsu strategy is the mutually beneficial relationship through shared goals which provides a level of trust. This network strategy is compelling in that the risk that is normal in supply chains is spread somewhat. Also, the flexibility provided by this strategy is impressive. Short-term relationships can be developed with multiple vendors which assist in negotiating reduction of costs paid to these vendors. Long-term relationships will be developed over time with a few key vendors which provide security in the delivery of high quality products. A few disadvantages to consider are costs involved in maintaining the network when multiple vendors are involved. It is important to actively manage these relationships to avoid increased costs of goods or services and to monitor quality.
A virtual company is formed by a network of independent companies. A virtual company has a large number of supplier and provider relationships which offers flexibility to meet changing market demand, and low overhead costs (Heizer & Render, 2011). Virtual companies are formed on the basis of cooperative agreements and have little to no hierarchy or vertical integration. The advantages offered…...

...JCT2 Supply Chain Task 1
B 1. Evaluating my use of budgets and pro-forma statements to plan for production capacity
In Ralph Estes's Dictionary of Accounting, a pro forma financial statement is defined as "a financial statement prepared on the basis of some assumed events and transactions that have not yet occurred." (Estes, 1981) Historical financial statements are used to measure an organization's past financial performance and condition. Without historical financial statements, financial analysis and evaluation would not be possible and management, board members, investors, and customers would be largely in the dark about how well an organization has done. Pro forma financial statements are similar to historical financial statements in appearance and use, except that they focus on the future instead of the past and are based upon assumptions rather than hard fact.
According to CliveVlieland-Boddy “the construction of pro forma statements is based upon detailed financial projections and the historical relationships between different income statements and balance sheet accounts. A set of current financials serve as the foundation on which the pro forma will be built.” (Vlieland-Boddy, 2011) With starting a new company and brand, I did not have much in the way of current financials to use for helping create the pro forma statements initially. When I did start receiving the reports, the information was hard for me to use for projections due to the lack of a track......

...Task 1 Assessment for Supply Chain Management
B. I named my microcomputer company GigaJet. I don’t know if it is true for everyone that opens a business, but I find that naming a business is a very difficult task. The company name is reflective of what I wanted shareholders to feel when they saw and used the product; a microcomputer that has a lot of storage, “Giga”, and is fast and can go anywhere, “Jet”.
Within the simulation each business was required to pick two segments to manufacture the microcomputers for. At GigaJet I chose to focus the manufacturing of our products to supply the workhorse and traveler customers. I chose these two segments because they had similar customer needs and wants, as well as a high potential demand. The next step within the simulation was to choose which markets to sell the microcomputers to. I developed a simple spreadsheet to analyze what markets would be the best fit for the company’s long term success. This spreadsheet was developed by multiplying the potential demand in each segment by the price that customers were willing to pay. From the following spreadsheet, I determined that the best markets for GigaJet to sell to were in the North American and European markets.
|North America|Europe|Asia|South......

...that is composed of manufacturers, supply chain partners, distributors and financiers who try to stay financially independent but work closely with each to ensure each other’s success. In Japanese, the word keiretsu means “group.” In business sense, the word is sometimes used as another word for partnership or alliance. Using this strategy will help your company by assisting in establishing stable, long-term partnerships, which in turn will help them to focus on core business requirements needed to assist with maintaining your products and production in several different aspects. Because the product that is being developed here is an intricate electronic device, there will be several partnerships that we will develop over time such as parts distributors and other components of our products (http://www.investopedia.com /terms/k/keiretsu.asp#axzz2IwCjpAVn). Using this strategy will also help us with the management of our finances through assistance with other departments and entities that specialize with financing. Even though this strategy is meant to sustain stability, this same stability can sometimes become an issue and cause problems with us being the manufacturer by not responding quickly to changes in the economy, culture or technology. Typically companies using this strategy organize around their own trading companies and banks. Each company using the keiretsu strategy is capable of controlling nearly every step of the economic chain in a variety of industrial,......

...Tiffany S. Williams, MBA 06/01/2012
My Mentor: Megan Murphy
Houston, Texas- Central Standard Time
Task 1
Supply Chain Management
Simulation Analysis (B):
With utilizing the pro-forma balance sheets revealed that I did not use the correct approach. My overall market share for traveler was around 94% however in the workhorse line my overall market share was only around 42%. I made a decision to invest $500.000 into a certificate of deposit which proved to be disastrous. I only opened one office in North America and because of my neglect in opening an additional office, I was not a leader in the market share.
It is vitally important to utilize the pro-forma balance financial statements as they are used to determine the outcome of previous decisions that one has made. Earlier, in the first quarter, I had a negative $294,000 that required that I take an emergency loan of $300,000. This was disappointing to me because and made me understand that I needed to make some adjustments especially since I was only at 3% market share with the workhorse line – I dropped the line completely. I made the decision to drop the workhorse after reviewing my profit and loss statements. I viewed this as a low profit item that was taking away from cash assets that could be best used to catapult our traveler line and this was the overall cause of having to take the emergency loan with the loan shark.
My overall goal was to regain market share and then work to defend it. I eventually......

...Task 3
A. Recommend, with sufficient support, the adoption of one of the following strategies by the power tool company: a Keiretsu network, a virtual company, a vertical integration, or a different supply chain strategy.
An efficient supply chain is fundamental to the success of any organization. The expense of the supply chain is usually an organizations largest cost therefore implementing a strategy that effectively minimizes costs while maintaining product quality is an effective way to increase profits.
The best way to minimize costs and maximize product quality is to adopt a lean operations strategy that includes just in time (JIT) initiatives. Central to the JIT technique is continuous problem solving. JIT requires that items and materials are ordered only when needed minimizing inventory. When inventory is minimized wasted costs in layout, quality, and procurement are easily spotted and immediately dealt with. With JIT very few suppliers are chosen creating large commitments to the organization. The suppliers should also use JIT and offer their expertise in design and quality control to the supply chain.
Since the owners of the power tool company are willing to own or invest in any component of the supply chain I would recommend they initiate a Keiretsu. A Keiretsu is a company coalition which includes few key suppliers and secondary suppliers. The power tool company would support key members of the Keiretsu through ownership or loans. The......

...incorporate as many of the JIT attributes in the lean operations strategy along with building systems that will help employees produce a more perfect product and develop these employees in training, teamwork and empowerment that will help meet the customer’s needs.
One way WCC Technologies can set up their production layout is where there are different sections that assemble different parts on the computer, such as a specific section can put in the motherboard, power supply, memory and each section would have the necessary tools or systems, such as soldering equipment, to assemble these items in the computer housing case. For example, at the start of this production line, the first department would prepare the computer housing case, then it travels to the next department that connects the motherboard, then it’s off to get the power supply connected, and so on until it is completely assembled and ready for packaging and shipping. Each department is going to need different tools and systems to perform their needed task in the production line. WCC Technologies management will need to determine what each stop on the production line will do and what they will need to produce the computer. If the simulation had allowed for WCC Technologies to structure their production with a lean operations process, it’s possible the production capacity of the facility could have produced the needed stocks outs in figure 2 that were missing or even cut expenses, which would have increased......

...Supply Chain Task 1
B.1 Pro-Forma and Budget
Quarter 1 marked the launch of NeoTech. Two million dollars in capital was raised by selling company stock. This capital was used for the initial cost of the launch. Unlike later in the simulation, budget decisions in the first quarter were much easier to manage because costs were fixed, and the revenue guaranteed. Just over half million dollars was spent to open the first office and complete research and development. I determined the direction of NeoTech would be to focus on producing a high end computer as its marquee product and a mid-range/office computer as a secondary focus.
Quarter 2 marked the first quarter where a product was produced, salesmen hired, and product sold. The most difficult decision in this quarter was finding the proper equilibrium between projecting sales of a new and unknown commodity, choosing the right amount of sales people and their compensation, and determining a competitive yet profitable price.
Summarizing the decisions made in quarter 2, a total of 9 salesmen were hired at 55k annual salary. It was estimated that each salesman would sell at minimum 100 computers. The high end computer, “Engineo” was priced at $3799.00 with a $300 rebate. The “Neoffice” was priced at $2,000.00 with a $100 rebate. The cost per unit of the engine and Neoffice were $2,146 and $1,794 respectively. Based on the cost per unit and the predicted sales per salesman, NeoTech directed the production of 600......

...JRT2: SUPPLY CHAIN – TASK 1
SIMULATION ANALYSIS
TROY A. KRUMWIEDE
WESTERN GOVERNORS UNIVERSITY
JRT2: SUPPLY CHAIN – TASK 1
SIMULATION ANALYSIS
Simulation Analysis
PrimeComp is a company introducing a new line of microcomputers throughout the world market. It is PrimeComp’s mission to provide its customers, from around the world, with quality computer systems that meet specific business requirements at the best possible value.
During the first quarter of operation, PrimeComp’s management reviewed market research to develop two brands in two target segments. PrimeComp’s primary brand, Champion, would be marketed to the Mercedes target market. A second brand, Globetrotter, would be designed for the secondary market, Traveler.
To best reach PrimeComp’s customers, it was determined that two sales offices would be necessary. The first sales office was located in New York, North America and the second would be opened in Tokyo, Asia. These two locations revealed the most potential for the two brands and target markets. A factory was built that would create approx. 3,250 units per quarter.
PrimeComp generated financing by issuing closely held stock. A total of 20,000 shares of common stock were issued at 100 per share to the owner and team members. This investment will be used for all first quarter expense and the unused balance will be carried over to quarter two.
During the second quarter we will need to hire sales, services, and factory worker personnel. ......

...November 10, 2013 JCT Task 1
B1
Pro-forma statements is a financial statement showing the forecast or projected operating results and balance sheet, as in pro forma income statements, balance sheets, and statements of cash flows. I did not use pro-forma statements in the beginning and it became nearly impossible to calculate my future expenses. If I had used the pro-forma statement, I would have been much more successful with the latter outcome by having funds available and less overhead.
A budget statement consists of an operating statement, including other economic flows, a balance sheet, and a cash flow statement, which I did not use until I realized that my company was in trouble after the third quarter. If I would have used my budget statement appropriately in the beginning, the company would have seen proper growth and capital gains. The negative outcome of not using budget statements was clear throughout the last three quarters.
My negative cash flow became excessive in quarter two due to over production of my products. Therefore in quarter three I had extremely high inventory holding cost and excess capacity costs. I tried to adjust in quarter four for the price per unit to compensate for my negative cash flow but I was already too far in the negative. Now that I have learned how the pro-forma statement works, I would have been able......

...WGU - Supply Chain - The Entire Course - All 3 Tasks
IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download
http://www.hwnerd.com/WGU-Supply-Chain-Complete-Course-All-3-Tasks-1803.htm?categoryId=-1
If You Face Any Problem E- Mail Us At Contact.Hwnerd@Gmail.Com
Task 1
Supply Chain Management
Simulation Analysis (B):
Utilizing pro-forma balance sheets revealed that I was too conservative in my initial
approach. My market share was 98% in the traveler series but dismal in the workhorse line. My
decision to invest $400,000 into a certificate of deposit was a critical error. I should have opened
an office in Europe sooner to maintain market share.
Pro-forma financial statements are critical to determine the outcome of previous
decisions. After my third quarter my error was to not completely analyze my financial
statements. Earlier, in the second quarter, I had went from a negative $394,000 to a positive
$493,749. This gave me confidence in my traveler line and since I was only at 4% market share
with the workhorse line – I dropped the line completely. I made the decision after reviewing
analysis of my profit and loss statements. I viewed this as a low profit item that was taking away
from our cash assets that could be best used to catapult our traveler line
My initial goal was to gain market share and defend it. I gained market share but did not
......

...WGU - Supply Chain - The Entire Course - All 3 Tasks
IF You Want To Purchase A+ Work Then Click The Link Below , Instant Download
http://www.hwnerd.com/WGU-Supply-Chain-Complete-Course-All-3-Tasks-1803.htm?categoryId=-1
If You Face Any Problem E- Mail Us At Contact.Hwnerd@Gmail.Com
Task 1
Supply Chain Management
Simulation Analysis (B):
Utilizing pro-forma balance sheets revealed that I was too conservative in my initial
approach. My market share was 98% in the traveler series but dismal in the workhorse line. My
decision to invest $400,000 into a certificate of deposit was a critical error. I should have opened
an office in Europe sooner to maintain market share.
Pro-forma financial statements are critical to determine the outcome of previous
decisions. After my third quarter my error was to not completely analyze my financial
statements. Earlier, in the second quarter, I had went from a negative $394,000 to a positive
$493,749. This gave me confidence in my traveler line and since I was only at 4% market share
with the workhorse line – I dropped the line completely. I made the decision after reviewing
analysis of my profit and loss statements. I viewed this as a low profit item that was taking away
from our cash assets that could be best used to catapult our traveler line
My initial goal was to gain market share and defend it. I gained market share but did not
......

...WGU - Supply Chain - The Entire Course - All 3 Tasks
http://www.homeworkminutes.com/question/view/41072/WGU-Supply-Chain-The-Entire-Course
Task 1
Supply Chain Management
Simulation Analysis (B):
Utilizing pro-forma balance sheets revealed that I was too conservative in my initial
approach. My market share was 98% in the traveler series but dismal in the workhorse line. My
decision to invest $400,000 into a certificate of deposit was a critical error. I should have opened
an office in Europe sooner to maintain market share.
Pro-forma financial statements are critical to determine the outcome of previous
decisions. After my third quarter my error was to not completely analyze my financial
statements. Earlier, in the second quarter, I had went from a negative $394,000 to a positive
$493,749. This gave me confidence in my traveler line and since I was only at 4% market share
with the workhorse line – I dropped the line completely. I made the decision after reviewing
analysis of my profit and loss statements. I viewed this as a low profit item that was taking away
from our cash assets that could be best used to catapult our traveler line
My initial goal was to gain market share and defend it. I gained market share but did not
keep it. My conservative approach early in the simulation did not allow me time to defend my
98% market share. I analyzed competitors and they were......

...Task 3
Supply Chain Strategy
by
Daniel Alcaraz
11-7-11
A) Keiretsu Network:
There are several choices of strategies we can adopt when we are talking about the supply chain of a company. The first strategy I would recommend and adopt over vertical integration or a virtual company which I will explain later is the strategy of a Keiretsu Network. It was founded by Japanese manufactures in which its part of a collaboration and part purchasing from suppliers and its also part vertical integration. The manufactures are major financial supporters of the suppliers through their ownership or loans. The suppliers become a major part of the company's coalition called Keiretsu. Any members of this network are assured long term relationships and are expected to to behave as partners and provide their expertise on quality production to the manufacture. Members can also have Keiretsu
father down the supply chain which makes second and even third suppliers apart of this coalition. Finding the right strategy for our company will be the start of our supply chain strategy. The main three are the Keiretsu network, virtual company, vertical integration. All three have their advantages and disadvantages. An example of a Keiretsu network would be our company working closely with a supplier, such as a motor manufacturer but not necessarily owing their company. A virtual company is network of independent......